Stockholders' Equity

3 Months Ended

Mar. 31, 2017

Stockholders' Equity [Abstract]

Stockholders' Equity

Note 6. Stockholder’s Equity

Stock Options

The following table represents the stock option activity for the three months ended March 31, 2017:

	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding options at December 31, 2016		1,381,843		$	5.87		4.95	$	50
Granted		2,000		$	2.57
Exercised		—			—
Forfeited		(591,069	)	$	5.23
Outstanding options at March 31, 2017		792,774		$	6.35		5.44	$	0
Options vested and expected to vest		763,992		$	6.48		5.22	$	0
Exercisable at March 31, 2017		486,368		$	8.48		3.19	$	0

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had they all exercised their options on March 31, 2017.  This amount changes based on the fair market value of our stock.  During the three months ended March 31, 2017 and 2016, the aggregate intrinsic value of options exercised under our stock option plans was zero.  Total fair value of options vested during the three months ended March 31, 2017 and 2016 was $83,000 and $210,000, respectively.

At March 31, 2017, there was $300,000 of unrecognized compensation cost related to existing options outstanding which is expected to be recognized over a weighted average period of 2.5 years.

During the first quarter of 2017, as a result of the resignation of the Company’s Chief Financial Officer (CFO), 50,000 total market-based stock options granted in 2014 and 2016 were forfeited.  Previously recognized stock-based compensation expense of approximately $58,000 was reversed in Q1 2017. This amount related to the portion of market-based grants which were unvested at the time of the CFO’s resignation.

Employee Stock Purchase Plan

In the second quarter of 2011, to advance the interests of the Company and its stockholders by providing an incentive to attract, retain and reward eligible employees and by motivating such persons to contribute to the growth and profitability of the Company, the Company’s Board of Directors (the “Board”) and stockholders approved an ESPP and reserved 333,333 shares of our common stock for issuance effective as of May 15, 2011. The ESPP continues in effect for ten (10) years from its effective date unless terminated earlier by the Company. The ESPP consists of six-month offering periods during which employees may enroll in the plan.  The purchase price on each purchase date shall not be less than eighty‑five percent (85%) of the lesser of (a) the fair market value of a share of stock on the offering date of the offering period or (b) the fair market value of a share of stock on the purchase date.  During the three months ended March 31, 2017 and 2016, no shares were purchased under ESPP.

Restricted Stock Units

The following table represents RSU activity for the three months ended March 31, 2017:

	Number of Shares			Weighted Average Grant-Date Fair Value per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding RSUs at December 31, 2016		351,921		$	4.59		1.06	$	908
Awarded		—			—
Released		(12,868	)	$	4.04
Forfeited		(69,123	)	$	8.25
Outstanding RSUs at March 31, 2017		269,930		$	3.68		0.78	$	592

At March 31, 2017, there was $488,000 of unrecognized compensation cost related to RSUs which is expected to be recognized over a weighted average period of 1.3 years.

Stock Repurchase Program

On April 27, 2005, our Board authorized the repurchase of up to 666,666 outstanding shares of our common stock.  As of March 31, 2017 the maximum number of shares remaining that can be repurchased under this program was 602,467.  The Company does not intend to repurchase shares without further approval from its Board.